Open digital innovation a contest driven approach

process, in which an organisation enables people outside it to contribute to itsinnovation.Open innovation contests can take place in any industrial and societal context,but recently man

Progress in IS

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Anders Hjalmarsson • Gustaf Juell-Skielse Paul Johannesson

Open Digital Innovation

A Contest Driven Approach

123

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This book came about to support the practice of contests to manage innovation and

to provide a state-of-the art survey for conducting research in open digital vation contests Contests combine creativity and business with fun and havebecome popular means for stimulating the development of services for the digi-talization of society

inno-Through its activity descriptions and guidelines, this book provides a practicallyuseful approach to innovation for managers and policy makers It helps contestorganizers to build the momentum to engage in open data innovation, and it offers aset of strategies for managing innovation barriers Also, it can serve as a textbook

on graduate and undergraduate courses in digital innovation and entrepreneurship.The content of the book is based on longitudinal action design research that wehave conducted over the past five years It involves multiple digital innovationcontests in Europe, Asia and Latin America and has given us access to a rich dataset on open innovation During our research journey, we have been able to supportthe contest organizers with theoretically anchored advice while at the same timecreate andfield-test the approach presented in the book

Our thanks to Daniel Rudmark for his contributions in the area of third-partydevelopment Results that have become an integral part of Chaps 6 and 9 Ourthanks also to Workneh Ayele whose work on innovation measurement forms thefoundation of Chap 15 and to Elea Juell-Skielse who developed the initialframework of strategic options presented in Chap.12 Finally, we want to expressour gratitude to Sweden’s innovation agency Vinnova for providing the necessaryresearch grants

v

1 Introduction 1

1.1 Introduction 1

References 3

2 Open Innovation 5

2.1 Models for Open Innovation 6

2.1.1 Crowdsourcing 6

2.1.2 Product Platforming 6

2.1.3 Collaborative Innovation Network 7

2.1.4 Innovation Contest 7

2.2 Digital Innovation 7

2.3 Read More 8

References 9

3 Open Digital Innovation Contest 11

3.1 Stakeholders in Digital Innovation Contests 11

3.2 Kinds of Innovation Contests 12

3.3 Innovation Contests as Innovation Intermediaries 14

3.3.1 Design Elements of Open Digital Innovation Contests 15

3.3.2 Pitfalls in Organising Innovation Contests 16

3.4 Advantages and Disadvantages of Digital Innovation Contests 17

3.5 Cases as Running Examples in the Book 17

3.6 Further Reading 20

References 21

vii

4 Organising Open Digital Innovation Contests 23

4.1 A Structured Approach 23

4.2 The Pre-contest Phase 24

4.2.1 Set Goals 24

4.2.2 Engage Stakeholders 25

4.2.3 Design Contest 25

4.2.4 Develop Platform 25

4.2.5 Monitor Contest 25

4.3 The Contest Phase 25

4.3.1 Motivate Developers 26

4.3.2 Manage Operations 26

4.3.3 Evaluate Contribution 26

4.4 The Post-contest Phase 26

4.4.1 Develop Strategy 27

4.4.2 Manage Barriers 27

4.4.3 Design Business Model 27

5 Set Contest Goals 29

5.1 Types of Goals 30

5.1.1 Outside-In Type of Goal 30

5.1.2 Inside-Out Type of Goal 31

5.1.3 Coupled Type of Goals 31

5.1.4 Non-innovation Type of Goal 31

5.2 Relationships Between Types of Goals 32

5.3 Why Are Goals Needed? 32

5.4 Activity Description 32

5.4.1 Sub-activities 33

5.5 Running Example 33

5.6 Guidelines 34

5.7 Read More 34

References 35

6 Engage Contest Stakeholders 37

6.1 Organizer 38

6.2 Participant 40

6.3 Resource Provider 41

6.4 Beneficiary 43

6.5 Activity Description 44

6.5.1 Sub-activities 45

6.6 Running Example 45

6.7 Read More 46

Reference 47

7 Design Contest 49

7.1 Designing a Contest Based on a Contest Format 51

7.1.1 Design Elements Given by the Contest Format 52

7.1.2 General Design Elements 53

7.1.3 Detailed Design Elements 55

7.2 Contest Rules 59

7.3 Budget 59

7.4 Activities 60

7.4.1 Sub-activities 61

7.5 Running Example 61

7.6 Guidelines 62

7.7 Read More 62

References 63

8 Develop Contest Platform 65

8.1 A Website Is not Good Enough 66

8.1.1 Developers’ Platform 66

8.1.2 Contest Communication 67

8.1.3 Coordination and Evaluation 68

8.2 Activity Description 69

8.2.1 Sub-activities 69

8.3 Running Examples 70

8.4 Read More 71

References 72

9 Motivate Developers 73

9.1 Motivating Different Types of Participants 75

9.2 Activity Description 76

9.2.1 Sub-activities 77

9.3 Running Example 77

9.4 Read More 77

References 78

10 Manage Contest Operations 79

10.1 Common Problems Encountered in Contest Operations 80

10.2 Lack of Solution Relevance 80

10.3 Lack of Innovation 80

10.4 Lack of Team Performance 81

10.5 Lack of Resources 82

10.6 Inadequate Use of Available Resources 83

10.7 Ineffective Communication 83

10.8 Other Problems 84

10.9 Activity Description 84

10.9.1 Sub-activities 85

10.10 Guidelines 86

10.10.1 Guidelines 86

10.11 Running Examples 86

11 Evaluate Contest Contributions 89

11.1 The Organiser-Driven Evaluation Method 90

11.2 The Automated Evaluation Method 90

11.3 The Expert Jury Evaluation Method 91

11.4 The Peer-Review Evaluation Method 92

11.5 The Crowd-Sourcing Evaluation Method 92

11.6 The Mixed Method Evaluation Approach 93

11.7 Methods for Evaluating Contest Contributions Vis-à-Vis Contest Formats 94

11.8 “And the Winner Is…”: Communicating the Evaluation Outcome 95

11.9 Activity Description 96

11.9.1 Sub-activities 96

11.10 Running Examples 98

12 Develop Strategy 101

12.1 Strategies Related to Open Innovation 102

12.2 Activity Description 103

12.2.1 Sub-activities 103

12.3 Guideline 105

12.4 Running Examples 105

12.5 Read More 106

References 107

13 Manage Innovation Barriers 109

13.1 Barrier Management 112

13.2 Activity Description 113

13.2.1 Sub-activities 113

13.3 Running Example 115

13.4 Read More 116

References 116

14 Design Business Model 117

14.1 Open Data Resource Provider 118

14.2 Catalyst 119

14.3 Service Provider 120

14.4 Innovation Partner 120

14.5 Activity Description 121

14.5.1 Sub-activities 121

14.6 Guidelines 121

14.7 Running Examples 121

14.7.1 Open Data Resource Provider—Example City of Stockholm 121

14.7.2 Catalyst—Example Viktoria Swedish ICT 122

14.7.3 Service Provider—Example Volvo Car Corporation 122

14.7.4 Innovation Partner—Example HiQ 122

References 122

15 Monitor Contest 123

15.1 Method Description 124

15.1.1 Phase 1: Design Measurement Model 125

15.1.2 Phase 2: Refine Model in Use 125

15.1.3 Phase 3: Learn and Communicate 126

15.2 Running Example 127

15.2.1 Goals 127

15.2.2 Contest Process 127

15.2.3 Measurement Model 128

15.2.4 Planning Phase 129

15.2.5 Ideas 130

15.2.6 Service Design Phase 130

15.2.7 Preparation Phase Running Example 131

15.2.8 Implementation Phase Running Example 131

15.2.9 Exploitation Phase Running Example 132

15.3 Guidelines 133

15.4 Further Reading 133

References 133

Appendix: Rules for the Open Digital Innovation Contest “Olympic City Transport Challenge” 135

Index 139

Chapter 1

Introduction

Abstract This chapter provides a background to the book It introduces the notion

of innovation and discusses how it can be managed, in particular through vation contests A life-cycle perspective on innovation contests is introduced, whichshows how a contest moves through the phases of pre-contest, contest, andpost-contest This perspective is used throughout the book and the activities of thelife-cycle are described and analysed in separate chapters, moving from goal settingand stakeholder engagement over operations management to business model designand barrier management

Innovation is about coming up with new ideas, developing new products andprocesses, and implementing new solutions in the social and economic life ofpeople A common view is that innovation is spontaneous, emergent and unpre-dictable It is a largely creative endeavour that is notoriously difficult to manage asdiscussed by Fagerberg et al (2006) However, Terwiesch and Ulrich (2009) arguethat innovation can be successfully managed, and this can be done by focusing onopportunities The key goal of innovation management is to generate many newideas,filter out the best ones, and then refine them into opportunities

An increasingly popular approach for managing innovation is the open vation contest, which is about an organisation inviting participants and offeringthem a prize for submitting new ideas and solutions Some examples of openinnovation contests are Travelhack, the Open Stockholm Award, the Volvo CarChallenge, the Electricity Innovation Challenge and the Olympic City TransportChallenge,five contests organised in Scandinavia as well as in Brazil in both singleand recurrent events between 2011 and 2016 These and other contests, used asrunning examples in this book, are introduced in Chap.3

inno-Innovation contests add an element of competition to the innovation process byletting several participants challenge each other to come up with the best contri-butions And, more importantly, open innovation contests constitute an open

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process, in which an organisation enables people outside it to contribute to itsinnovation.

Open innovation contests can take place in any industrial and societal context,but recently many organisations have initiated open digital innovation contests.These are contests in which the organiser makes various digital resources available

to the contest participants who can use them to build novel digital services; e.g.Resledaren“a smartphone based digital service that enables people with cognitivedysfunction to use public transport”, PAW—ProActive Wipers “an integrateddigital service that provides enhanced driver support in future cars”, and RioGo “asmartphone based service that provides personalised advice on how to travel todifferent events during the Olympics based on your own event schedule”.Though open digital innovation contests offer great promise and there are manyexamples of highly successful contests, it is still challenging to organise suchcontests in a way that fully realise their potential Contest organisers need principlesand guidelines for designing and managing contests as well as benefitting from theiroutcomes The goal of this book is to offer such principles and guidelines in aneasily accessible format The book takes a life cycle perspective, emphasising howopen digital innovation moves through the phases of pre-contest, contest andpost-contest See Fig.1.1

Within the phases, there are a number of activities carried out iteratively:

• Pre-contest phase—this phase consists of the activities before the contest starts.Its main activities are: set goals, in which the goals of the contest are estab-lished; engage stakeholders, in which contest participants, resource providersand potential beneficiaries are identified and attracted; design contest, in whichthe contest is designed and planned; and develop platform, in which a platformfor the contest’s digital resources is created

• Contest phase—this phase consists of the activities carried out during thecontest Its main activities are: motivate developers, in which developers aremotivated to participate in the contest; manage operations, in which the contest

is managed on a day-to-day basis and evaluate contributions, in which thecontest contributions are evaluated and the winners are selected

Motivate developers

Evaluate contributions

Develop strategy

Manage barriers

Design business model

Fig 1.1 A life-cycle perspective on open digital innovation contests

• Post-contest phase—this phase consists of the activities carried out after thecontest Its main activities are: develop strategy, in which a strategy for therelationship between the contest organiser and participants is established; designbusiness model, in which a business model for exploiting the contest contri-butions is created; manage barriers, in which barriers for exploiting the con-tributions are identified and addressed.

The book is primarily intended for managers and policy makers of open digitalinnovation who are interested in contests in order to stimulate the innovationprocess It can also serve as a text on graduate and undergraduate courses in digitalinnovation and entrepreneurship The book does not only offer an analysis of keyissues in open digital innovation contests but also provides tools for improving thecontests, including motivation factors, digital support platforms, a measurementmodel for evaluating open digital innovation and instruments for overcominginnovation barriers

Chapter2offers an introduction to open innovation and digital innovation, whileChap.3discusses how contests can be used for stimulating open digital innovation.These chapters can be skipped by the reader who is already familiar with thesenotions Chapter4provides an overview of the suggested approach for preparing,managing and benefitting from the contests The approach is divided into the threephases of pre-contest, contest and post-contest, and each includes a set of activities.See Fig.1.1 In total, there are eleven activities, each of which is described in achapter of its own, making up the main part of the book from Chaps.5–11 It isrecommended to start with Chap.4in order to get an overall understanding of theapproach, and it is then possible to read the remaining chapters in any order as theyare essentially self-contained

Chapter 2

Open Innovation

Abstract This chapter introduces the notion of open innovation, which is aboutorganizations making use of external ideas, solutions and technologies instead ofonly relying on its internal innovation Three different forms of open innovation arediscussed: inside-out, outside-in and coupled innovation, which differ with regard

to the direction of the ideaflows The chapter also introduces a number of modelsfor open innovation, including crowdsourcing, product platforming, collaborativeinnovation networks, and innovation contests Digital innovation has transformedmany businesses, enabling new kinds of smart, connected products as well as novelbusiness models based on platforms

Innovation is about new ideas, new products, or new processes Innovation can beradical such as the digital computer, or it can be incremental such as new batterieswith longer lifetimes Sometimes, innovation is taken in a broader sense and is seen

as the result of processes that combine novel ideas and products, with an impact onsociety at large

Innovation can take place anywhere in society: in universities, in companies, atgovernments, among individuals, etc It has often been the case that the innovationsneeded by an organisation have been produced by that organisation itself In fact,there has sometimes even been resistance to using innovations generated elsewhere,

as evidenced by the “not invented here” syndrome This kind of innovation thattakes place entirely within an organisation is commonly called closed innovation.While closed innovation can be successful for an organisation, it suffers from onemajor limitation: most of the smart and innovative people in any area work outsidethat organisation

As a response to the limitations of closed innovation, the notion of open vation has been proposed, defined by Chesbrough (2006) as “a paradigm thatassumes thatfirms can and should use external ideas, as well as internal ideas andinternal and external paths to market, as thefirms look to advance their technology”(p xxiv) Organisations should not only rely on their own resources for innovationbut also make use of external ideas, technologies and people Complementarily,organisations should also open up their own innovation so it can benefit others

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There are three forms of openness in open innovation, outside-in, inside-out andcoupled In the outside-in form, the initiator of open innovation unlocks itsorganisational borders to make use of external ideas and technologies In the inside-out form, openness refers to situations in which the initiator of open innovationunlocks its own resources so that external people, e.g developers, can use them Inthis way, unused innovations are made accessible to others Outside-in andinside-out open innovation can also be combined into a coupled process in whichorganisations work in alliances that involve both giving and taking.

Open innovation puts new demands on organisations’ competence, so-calledabsorptive and desorptive capacity (Lichtenthaler and Lichtenthaler 2009).Absorptive capacity is the ability that an organisation has to evaluate and useexternal knowledge related to the outside-in form of openness Desorptive capacity

is an organisation’s ability to exploit internal knowledge through external people,relating to the inside-out form of openness

Open innovation can take many different forms, including crowdsourcing, productplatforming, collaborative innovation networks and innovation contests

As defined by Merriam-Webster, crowdsourcing is “the practice of obtainingneeded services, ideas, or content by soliciting contributions from a large group ofpeople and especially from the online community rather than from traditionalemployees or suppliers” The word is a combination of “crowd” and “outsourcing”and the idea is to outsource work to a crowd For innovation, the crowd couldconsist of customers of the outsourcing organisation but it could comprise externaldevelopers or suppliers and partners Crowdsourcing is not a new phenomenon, forexample, in 1714 the British government offered the public a monetary prize towhoever could provide the best solution to determining the longitude of a ship atsea But crowdsourcing has become increasingly popular in recent years thanks tothe opportunities offered by online platforms

A product platform consists of a tool kit and other resources that contributors canexploit, modify and extend Examples of such platforms are mobile operatingsystems, which developers can use to build and distribute their mobile apps Other

examples are SDKs (Software Development Kits), such as the Eclipse platform,which provide environments for designing software Product platforms offer acommon basis around which an organisation and external contributors can worktogether and generate innovations As platforms typically are long-lasting, theyprovide opportunities for continuing and deeply integrated cooperation.

As defined by Gloor (2006), a collaborative innovation network is“a cyber-team ofself-motivated people with a collective vision, enabled by the Web to collaborate inachieving a common goal by sharing ideas, information and work” (p 4) Members

of such a network collaborate and communicate directly with each other, instead ofusing hierarchies They are intrinsically motivated and work together in order tosupport a cause or advance an idea By participating in innovation networks, anorganisation can both obtain ideas and innovations from the network and share itsown ones Thus, innovation networks enable outside-in as well as inside-out andcoupled open innovation

This kind of digital innovation does not only apply to products and services butalso to processes and business models An example is Airbnb that uses a digitalsolution for matching travellers with people who have a room to rent Anotherexample is Uber that allows almost any car owner to become a taxi driver and letscustomers find and order taxis using their smartphones The innovation of these

companies does not reside in the services they offer but in their business models, i.e.how they connect actors in a network to create value.

Open data have recently become a key resource for digital innovation The ideabehind open data is that data should be free for everyone to use, reuse and dis-tribute There should not exist any restrictions in the form of copyrights, licenses,patents or other control mechanisms As stated by the Open Definition (http://opendefinition.org/)“Open means anyone can freely access, use, modify and sharefor any purpose (subject, at most, to requirements that preserve provenance andopenness).” Open government data have been advocated as a means for strength-ening democracy as well as economic growth through digital innovation Bymaking government information accessible as open data distributed via APIs, novelservices can be designed that improve transparency, accountability and publicparticipation in decision processes Open government data can also create businessopportunities by enabling companies to develop services that process, integrate,distribute and present the data in new ways

Open data can be used in many ways for open innovation An example ofinside-out openness is an organisation that provides open data through APIs toexternal developers A digital service generated from this form of distributeddevelopment could either become viable outside the data providing organisation, orbecome a part of the digital service repertoire within the organisation The latterscenario is an example of a coupled innovation process, meaning that the devel-opment initiative gradually moves back inside the data provider again, after externalknowledge has been used to speed up the innovation process

Gassmann and Enkel (2004) introduce three process archetypes for open vation: the outside-in process, the inside-out process and the coupled process Theysuggest that the future of innovation is not about outsourcing internal innovation,but about following aflexible innovation strategy that includes outsourcing ven-tures, reintegrating new businesses, scanning and integrating new technologies andconnecting external sources to the internal innovation process Surowiecki (2005)investigates a key insight behind crowdsourcing: large groups of people can besmarter than an elite few and better at solving problems, fostering innovation andcoming to wise decisions

Lichtentaler and Lichtentaler discuss competences related to open innovation Intheir framework they distinguish between internal and external competences and afirm’s capacity to explore knowledge from other firms as well as their capacity toexploit knowledge through inside-out type of innovation processes.

Chapter 3

Open Digital Innovation Contest

Abstract This chapter introduces open digital innovation contests that aim todevelop digital services Key stakeholders in such contests are identified: organ-isers, participants, resource providers, and beneficiaries A classification of digitalinnovation contests is proposed based on the length of a contest and its inclu-siveness Other design elements of contests are also discussed, including media,target group and evaluation It is argued that innovation contests can be viewed asinnovation intermediaries that help to connect actors in an innovation system.Advantages and disadvantages of innovation contests are discussed Finally, sixcontests are introduced, which serve as running examples throughout the book

Open digital innovation contests are competitions that aim to develop digital vices Based on the work by Hjalmarsson and Rudmark (2012), they can bedescribed as events in which external developers compete to design and implementinnovative and solid digital service prototypes, based on digital resources madeavailable by the organiser There are three key ingredients in this definition First,the participants of the contests are to be external developers, i.e developers outsidethe organisation that arranges the competition In this way, new categories of peopleare drawn into the innovation system around an organisation, thereby enabling openinnovation Furthermore, the goal is to develop a digital service prototype; it is notsufficient just to suggest a new idea or create a product without digital content.Finally, the service developed is to be based on digital resources made available bythe organiser

A digital innovation contest is a highly social undertaking involving different kinds

of stakeholders First, there is the organiser who sets up and runs the contest It alsomakes digital resources available to the external developers Sometimes, theorganiser can be a single organisation, but it is common that several organisations

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with complementary competencies form a team and organise the contest together.Second, there are the participants in the contest, who are external developers whotake part in the contest and create service prototypes Participants can be bothindividuals and teams and they can have different backgrounds, such as beingcitizens, students, entrepreneurs or professional developers Third, there are theresource providers, who offer digital resources as well as other building blocks to

be used by the participants A resource provider can offer data, digital services andsupport tools, but alsofinancial means and know-how Fourth, there are the ben-

eficiaries who benefit from the results of the contest Clearly, the organiser isalways a beneficiary as are the participants and the resource providers But, also,potential users of solutions based on the prototypes generated can be beneficiaries

as well as innovation communities and society at large

Digital innovation contests are to generate digital service prototypes and they,therefore, constitute a special case of contests and competitions in open innovation

In general, such contests aim to produce any kind of product or service or even just

an idea or a design sketch Many different words and phrases are used for talkingabout innovation contests, e.g innovation competition, innovation tournament, ideajam, design contest and design prize These words do not have afixed meaning anddifferent people use them in different ways But they indicate important differencesbetween innovation contests that have to do with purpose, time and the degree ofinclusiveness

Innovation contests are used for many purposes From the organiser’s spective, they can help to generate more ideas that can be transformed into productsand services They can help to select from among competing ideas andfilter outthose that are the most promising They can also help to improve the visibility andimage of the organiser by creating a buzz and drawing attention to the organiser andits brands Yet another purpose is to strengthen the size and dynamism of aninnovation community in which the organiser participates For open digital inno-vation contests, a related purpose is to investigate the opportunities that an opendata platform can offer an innovation community Feedback from an innovationcontest can then help the organiser to understand which of the data offered is seen asmost useful by the developers, what additional data could be valuable, and whichdelivery channels are most appropriate

per-The time period of an innovation contest can vary Some contests are very shortand intensive, maybe only a few days during which developers meet, create andpresent their contributions and get them evaluated But innovation contests can also

go on during an extended period of time, weeks or months, during which opers produce their ideas, designs and prototypes Such long running contests may

also include multiple rounds of evaluations, similar to large sporting events Thismeans that weak contributions can befiltered out at an early stage, while strongerideas can be developed and evaluated more carefully.

Innovation contests can be more or less inclusive with respect to participation.The most open form would accept anyone entering the contest A closed formwould only include invited participants Then there are all the forms in between, forexample, restricting participation to certain kinds of people (individuals, companies,public sector organisations, etc.) or people with specific qualifications (educationaldegree, competence in an industry, etc.) Four types of innovation contests can bedistinguished by combining the dimensions of the time period and the degree ofinclusiveness, see Fig.3.1 An innovation jam is only for a short time and veryinclusive; it is useful for generating many new ideas An innovation cup is alsoinclusive but the time is extended; it is helpful for strengthening an innovationcommunity An innovation battle is short and exclusive; it can be used for quicklyidentifying strong opportunities for novel digital services based on the open digitalresources available at the contest An innovation challenge is long and exclusive; itcan help an organiser to decide whether to build or procure Consequently, theinnovation challenge may be used as part of a procurement process or as an initiator

to a development process with the objective of creating a new digital service to belaunched on an end-user market

The key notions introduced so far are summarised in Fig.3.2, showing the fourtypes of stakeholders as well as the four types of open digital innovation contests.Thefigure also indicates that resource providers provide digital resources that areused by participants to produce service prototypes, which can benefit beneficiaries

What should we buy or build?

Inclusive recruitment Exclusive recruitment

Inclusive recruitment Exclusive recruitment

Long contest

Fig 3.1 Types of innovation contests

3.3 Innovation Contests as Innovation Intermediaries

In open innovation, different kinds of agents act and interact to create, adopt anddiffuse innovations Together, they constitute an innovation system The compo-nents of an innovation system include participants, who can be public or privateFig 3.2 Key notions of open digital innovation contests

organisations as well as institutions, i.e., rules, laws, habits and practices thatgovern and regulate the interactions and relationships between the participants.Typical interactions in an innovation system are business transactions but alsolearning processes, in which knowledge is exchanged between organisations notnecessarily managed as business transactions.

The key participants of an innovation system of open data services are open datasuppliers, developers and end users But innovation systems often include partici-pants who fulfil bridging and brokerage roles, so called innovation intermediaries.These intermediaries do not innovate or use innovations themselves but, instead,help other participants to do so They help to connect potential providers, facilitatebusiness transactions, help tofind advice and funding support and, in general, act asmediators This helps to overcome constraints in an innovation system

By organising digital innovation contests, participants in an innovation systemtry to motivate others, both to engage in open service innovation and to transferinformation between each other about available open data and available solutions.Hence, organisers of digital innovation contests take on the role of innovationintermediaries, stimulating the development of new open services

Setting up a digital innovation contest can be seen as a design process, in which theorganiser identifies and configures a number of design elements The list of designelements is open ended and some of them can be unique to a particular contest, butthere are a number of key elements that appear in every contest:

• Media Innovation contests can make use of different kinds of media and theycan be offline, online or mixed

• Organiser The organiser can be a company, a public organisation, an industryconsortium, an NGO or even an individual

• Task/topic specificity The topic of the contest and the task to be carried out bythe contestants can be more or less well-specified; sometimes they are veryopen, leaving room for the participants to explore many ideas, while, some-times, they are very specific

• Degree of elaboration Some contests only require ideas as contributions, whileothers may require design sketches, prototypes or even fully functioningsolutions

• Target group The most open innovation contests will accept anyone as aparticipant, while others may restrict participation, e.g to companies in a certainindustry or to individuals with specific qualifications

• Eligibility Eligibility determines who is allowed to participate: individuals,teams or both

3.3 Innovation Contests as Innovation Intermediaries 15

• Contest period Contest periods can be very short (some hours to a maximum of

14 days), short (15 days to 6 weeks), long (6 weeks to 4 months) or very long(more than four months/indefinite)

• Reward/motivation Motivation can be built by intrinsic as well as extrinsicmotivators Extrinsic motivators include awards and prizes, while intrinsicmotivators include fun, reputation and self-realisation

• Community functionality Community functionality is provided by applicationsthat support interaction, information exchange, community building and col-laborative product design, e.g through social media, web sites and tailor-madedevelopment platforms

• Evaluation The evaluation of contributions can be carried out by differentpeople, resulting in self-assessment, peer review or evaluation by a jury ofexperts

Organisers of open digital innovation contests encounter many kinds of pitfalls bothbefore, during and after the contest:

Pre-contest

• Unclear goals The organiser does not make the goals of the contest clear Therecan be different goals for a contest, such asfiltering out solutions or improvingthe organiser’s brand, and it is perfectly fine to combine several goals But theyshould be made clear and explicit

• Fragmented audience The organiser targets a too fragmented audience.Depending on the contest goals, it is often required to focus on a specific group

of potential participants, for example suppliers, customers or university students.However, there are also cases where it is appropriate to invite anyone to thecontest independently of his or her background

• Too broad or too narrow tasks The organiser does not define the contest taskswith an appropriate specificity The tasks should be so broad that they areunderstandable and interesting for a large audience but also so narrow that thecontributions result in relevant and useful solutions

Contest

• Too few resources allocated The organiser allocates too few resources forinteracting with the contest participants The participants may need a lot ofsupport and ask for a great deal of interaction during the contest, and theorganiser needs to be able to handle these requests

• Changing the rules The organiser changes the rules during the contest In order

to keep the trust and commitments of the participants, the organiser should stick

to the rules that have been announced including those for deadlines and awards

• Insufficient support to participants The organiser does not support the pants in further developing their solution after the contest If a goal is totransform the prototype delivered by a participant into a working service, manyresources are required Therefore, the organiser may need to support the par-ticipant with financial resources, market knowledge, technology resourcesand/or other kinds of resources

Contests

Innovation contests can offer important advantages for their organisers Byinvolving external developers, the results of a contest can help to reduce the cost ofresearch and development for the organiser External developers can also providefresh and original ideas that would not have been developed within the organisa-tion, thereby increasing the chances for radical innovation Additionally, there is apotential for synergy between internal and external developers This synergy can beparticularly valuable for an organiser with limited digital experience and compe-tence, as a digital innovation contest can bring in developers with complementarycompetences Another kind of advantage is that an innovation contest canstrengthen the status or brand of the organiser, by providing visibility and pro-jecting an image of openness and innovation The format of an open contest alsoenables viral marketing, as the word spreads among developers who could beinterested in participating in the contest

There are, however, also potential risks and disadvantages with a digital vation contest One is that the organiser incidentally reveals information that is notintended for sharing This could, in some cases, even result in losing a competitiveadvantage due to revealing intellectual property More generally, the organiser canlose control by inviting external developers into its own innovation processes.However, compared to other forms of open innovation, an innovation contest offersthe organiser the means to regulate and incorporate external innovation Theremaining chapters of the book will show how this can be done in a systematicmanner

In the book, eleven contests are used as running examples to illustrate differentaspects when organising an open digital innovation The contests were held inScandinavia and Brazil between 2011 and 2016 The authors have acted as either3.3 Innovation Contests as Innovation Intermediaries 17

organisers or evaluators in these cases and have, therefore, access to rich datamaterial from each event.

• Westcoast Travelhack 2011 With the aim of attracting external developers to anew portal with APIs to open public transport data in Sweden (Trafiklab.se),Travelhack 2011 was organised in October 2011 in Gothenburg, Sweden Thecontest format was a 24-hour innovation jam and yielded twenty digital, mostlysmartphone based, apps with the joint aim of boosting sustainable personaltransport

• Travelhack 2012 Oslo InformNorden, Norwegian National Railway (NSB) andTrafikanten organised a second Travelhack in 2012 located in Oslo main centraltrain station The contest format was a 24-hour innovation battle with four teamswith professional external developers The aim was to probe what would be theoutcome if specific data sets, currently not released as open data, were madeaccessible to external developers

• Volvo Car Challenge 2013 The theme for the Volvo Car Challenge was grated safety and driver support The format for the contest was a stagedinnovation challenge Between March and June 2013, twelve invited teamscompeted to develop qualified ideas for digital prototypes that adhered to thecontest theme Three of the teams were rewarded funds to transform their ideasinto operational prototypes and, amongst these three, one team was selected asthe winner with the chance of a commercial contract with Volvo Cars

inte-• Travelhack 2013 Sweden With the combined aims of: (1) attracting newdevelopers to Trafiklab.se and: (2) generating innovative digital services whichwould strengthen the attractiveness of public transport, Samtrafiken,Storstockholms Lokaltrafik and Viktoria Swedish ICT organised the thirdinstalment of Travelhack in Stockholm 2013 The contest format selected wasthe innovation cup format with an idea phase, a refinement phase and a finale inthe form of a 24-hour hackathon Over 200 interested teams signed up in theidea phase, generatingfifty-four qualified submitted ideas A screening of theseideas resulted in the selection of twenty-four teams who were invited to refinetheir own ideas during a one-month preparation phase Thefinale was organised

in mid-March 2013 as a 24-hour hackathon resulting in three differenttheme-winners and an overall winner of the competition

• Volvo Car Challenge UX 2014 Following the same format as Volvo CarChallenge 2013, the second instalment of the contest was organised in 2013with the theme user experience In addition to influencing development of newvalue creating services, the aim was also to encourage development outside thehosting vehicle OEM, explore the capacity in technical platforms and explorewhat value could be created through the use of new development processes Thecontest was organised in collaboration with the Vehicle ICT arena inGothenburg, Sweden The contest generated eighteen ideas by ten participatingteams Three teams were awarded funds to transform their ideas into workingservice prototypes and an overall winner was selected at the end of the contest

• Travelhack 2014 Norway The fourth instalment of Travelhack was organised inMay 2014 by a consortium of ten organisations, including NSB, ViktoriaSwedish ICT, Startup Norway, University of Oslo and TransportøkenomiskInstitutt The contest had two tracks One professional track was organised as aninnovation battle and one open track was organised as an innovation jam Bothtracks were 24 h events that were located at the national railway innovationcentre in Drammen, Norway Seventeen teams joined the open track and seventeams attended the professional track The aim with the open track was tostimulate external developers to produce digital service prototypes that enhancethe travelling experience when using public transport In order to stimulatedevelopment, open data as well as traveller persona were provided to thedevelopers The aim with the professional track was to test a new form of publicprocurement The teams who attended this track were challenged to develop aprototype for a widget that could be included in the tablet that would be theprincipal information device for train personnel in Norway.

• Open Stockholm Award 2014 The contest was organised as a two-month stagedinnovation challenge It attracted participants from fourteen countries andgenerated ninety-three contributions based on open data sources provided by theCity of Stockholm, Stockholm region and private enterprises In order to supportthe contestants, four meetings were organised and communication was chan-nelled via a contest platform Two winning teams shared the winner’s prize One

of the winners had developed an app for optimising on- and off-load zones in thecity, while the other team developed an app for citizens and visitors to help themfind restaurants and pubs during the visit

• Goods Distribution Challenge 2014 The City of Gothenburg, together withViktoria Swedish ICT, the Swedish Transport Administration, DB Schenker,DHL, DSV and Renova organised the Goods Distribution Challenge inGothenburg in the spring of 2014 The contest followed the innovation cupformat and invited external developers to build digital services based on opendata that would enhance road transport predictability in city areas The specificopen data used consisted of data sets related to disturbances in the road network,but the teams were, in addition, allowed to use supplementary data to make theirservices work The threshold for participation in the contest was high, conse-quently only ten teams participated with four teams contributing with opera-tional prototypes The winning team won support to submit applications forfunding as well as support from the participating transport companies to test theprototype in a live setting

• Volvo Trucks Open Innovation Challenge 2015 The purpose of the contest was

to encourage external developers to build IT services that created benefits for thevehicle industry, using the platform Automotive Grade Android (AGA) Theplatform is an open development platform developed and operated byVehicle ICT Arena and partners in Gothenburg, Sweden Through the platform,external developers can use data sets and signals, e.g GPS-positioning, speedand fuel consumption, to build novel digital services that could be implemented

in current or next generation vehicles The contest attracted both students,

start-up and professional teams, and was organised as a staged innovationchallenge with afinal hackathon.

• Electricity Innovation Challenge 2015 Electricity Innovation Challenge 2015was an open innovation contest that took place in Gothenburg in Autumn 2015.The contest attracted forty-eight teams who developed suggestions for innova-tions aimed at making tomorrow’s bus trips more attractive The goal was todevelop prototypes that could be exposed and tested live in ElectriCity after thechallenge Competing teams had, in addition to expert advice and method-ological support, among other things, access to new open real-time data from thebuses and drawings and plans for the bus stops This was made available via theElectricity’s innovation platform Additionally, the challenge offered expertadvice and methodological support throughout the contest in four developmentworkshops

• Olympic City Transport Challenge 2015–2016 This contest was organised inRio de Janeiro prior to the Olympics in the city in 2016 The theme for OlympicCity Transport Challenge was“How do we make Rio public transport and urbansustainable mobility more reliable, comfortable and accessible?” The contestwas divided into three categories: Travel planner, Comfort and accessibility, andExperience the Olympics The building blocks made available for externaldevelopers participating in the contest were transport data and user personaillustrating different challenges for personal transportation in the city Thechallenge was a part of the protocol of intentions signed by Empresa Municipal

de Informática—IplanRio, the Rio Operations Centre (Centro de Operações Rio)and Viktoria Swedish ICT, to design and manage a research process based onthe mobility data available in the data.rio website—the City Hall’s open datacatalogue Besides facilitating the mobility of the city before and after the Rio

2016 Games, the challenge became an opportunity to empower local andinternational external developers Sixteen teams enrolled for thefirst phase ofthe challenge The teams spanned individual developers and start-ups to mediumand large companies, from seven different countries Divided into the threecategories—Comfort and Accessibility, Experience the Olympics and TravelPlanner—nine projects reached the final prototype phase The users of thewinning services will benefit from the ease of information provided; e.g betterselection of routes when crossing the city, better combination of public transportresources, better bus stop indication for people with disabilities, and person-alised information about Olympic events and other tourist/cultural activitiesthroughout the city

Terwiesch and Ulrich (2009) have written a book on innovation contests in whichthey focus on generating promising opportunities which are then evaluated andfiltered in a contest Thereby, it is possible to arrive at exceptional opportunities in a

methodical and systematic way The role of the organisers of contests as innovationintermediaries are discussed by Juell-Skielse et al (2014) The design elements foropen digital innovation contests are based on the work by Bullinger et al (2010)and Hjalmarsson and Rudmark (2012) An overview of different kinds of contests isgiven by Adamczyk et al (2012) Pitfalls are discussed in (http://www.100open.com/2016/01/10-dos-donts-for-open-innovation-competitions/).

References

Adamczyk, S., Bullinger, A C., & M öslein, K M (2012) Innovation contests: A review, classi fication and outlook Creativity and Innovation Management, 21(4), 335–360 Bullinger, A C., et al (2010) Community ‐based innovation contests: Where competition meets cooperation Creativity and Innovation Management, 19(3), 290 –303.

Hjalmarsson, A., & Rudmark, D (2012) Designing digital innovation contests In Design Science Research in Information Systems Advances in Theory and Practice Berlin, Heidelberg: Springer.

Juell-Skielse, G., Hjalmarsson, A., Juell-Skielse, E., Johannesson, P., & Rudmark, D (2014) Contests as innovation intermediaries in open data markets Information Polity, 19(3, 4), 247 – 262.

Terwiesch, C., & Ulrich, K T (2009) Innovation tournaments: Creating and selecting exceptional opportunities Harvard Business Press.

Figure4.1provides an illustration of the approach for how to design and operateopen digital innovation contests from the idea to a viable digital service prototype.However, each open digital innovation contest has to be carefully organised for itsspecific goals using the approach as guidance.

The approach supports organisers’ ambitions to involve external developers inthe innovation of digital services based on digital resources made available to them

A contest will involve a number of stakeholders and the approach promotes sharedunderstanding of the contest process Moreover, organising innovation as a contestrequires a focus at the nexus of innovation, performed by others while retainingcontrol over the innovation process

The key message of the model can be summarised as follows: Open digitalinnovation provides a complement to traditional models of digital service devel-opment by distributing the innovation practice to networks of developers external tothe contest organisers The success of open digital innovation requires an organi-sational form that both stimulates external developers to participate and supports theorganisers to keep control over the innovation process and its outcomes

The approach consists of three phases and includes eleven activities It has apedagogical function and should not be too strictly interpreted in terms of tem-porality For example, goals are set early but can change over time, for instance,when a new stakeholder enters the organising team Another example is that the

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contest support platform, which is established prior to the contest, may be enhancedwhen the contest is running due to new digital resources becoming available to thecontest participants.

The pre-contest phase constitutes the starting point for the approach It includes aset of four interrelated activities that are performed to plan and prepare for thecontest: Set goals, engage stakeholders, design contest and develop platform Thegoals are the starting point for determining what stakeholders to attract and fordesigning the contest In turn, the goals will be affected by the stakeholdersinvolved as well as the available design options This will then affect what infor-mation technology structure is needed to facilitate transfer of knowledge andinformation between the stakeholders

The organiser’s goals are fundamental to the design and preparation which will bemade later when setting up the contest In this activity, the organisers establishgoals for open innovation driven by the contests The goals shape the process andcriteria used to select winning contributions and the assessment of the contest as awhole They also provide insights into the role that the organiser will take after thecontest and they therefore govern the strategy the organiser will develop for the postcontest phase

Motivate developers

Evaluate contributions

Develop strategy

Manage barriers

Design business model

Fig 4.1 Approach for organising open digital innovation contests

4.2.2 Engage Stakeholders

Key contest stakeholders are: organiser, external developer as well as resourceprovider and beneficiary In this activity, the organisers establish an organisingteam and attract external developers to participate in the contest Moreover, theorganisers attract providers of necessary resources, and they clarify who the ben-

eficiaries are, for example end-users and the organisers themselves

There are several ways to design a contest In this activity, the organisers design thecontest based on the goals and the stakeholders it is supposed to attract Media,contest period and task specificity are examples of design elements covered in thisactivity

Open digital innovation requires that knowledge and information is transferred prior

to, during and after the innovation contest It also requires that knowledge transfer

is coordinated by the organising team In this activity, the organisers establish acontest support platform that supports digital service development and enableseffective communication between external and internal stakeholders during theinnovation process

In addition to the four activities described above, the activity Monitor contest starts

in this phase and extends across all the three phases of the approach The organisersmonitor and assess the progress of the contest and its effects It includes a methodfor developing a measurement model specific to the goals of a particular contest

The heart of the approach is the contest phase In this phase the organiser movesfrom planning and preparation to contest operations It starts with the activityMotivate developers to attract participants to the contest Organising innovation as a

contest may seem simple, however, it requires careful management This need formanagement is addressed in the activity Manage operations A contest is aboutpicking winners given a pre-defined set of rules In the last activity, Evaluatecontributions, the submitted service prototypes are evaluated following theassessment process defined in the pre-contest phase.

A successful contest requires the participation of external developers In thisactivity, the organisers engage, enrol and motivate participants For some contests,the threshold to participate is low, which enables the organisers to attract externaldevelopers from various target groups In other cases, the threshold to participate ishigh due to the requirements of a specific domain knowledge or technical expertise.Given the circumstances for the specific contest, one key activity is to motivate andengage individuals or teams of developers to participate

Operating an open digital innovation contest is a delicate project The activityManage operations is informed by the project management body of knowledge Inthis activity, the organisers coordinate the distributed work process, involvingseveral stakeholders, from the contest start to the final when the winners areselected It involves proactive and reactive measures to common problems

There are several ways to run the winners in a contest In this activity, theorganisers develop evaluation criteria from the contest goals Moreover, theorganisers choose and apply a method for evaluating contest contributions Forexample, they can establish an expert-jury or use a peer-review method Themapping of evaluation criteria to the goals is defined for the contest

Organisers’ involvement in the contest process does not necessarily end with thefinal and singling out of winners Given the goals of a specific contest and itsintended effects, an organiser could be more or less involved also after the contest

Based on a framework of different options for post-contest support, in the activityDevelop strategy, the organisers develop a strategy for involvement after thecontest The activity Manage barriers addresses barriers that hamper externaldevelopers when they move from the prototype development to the servicedeployment In the activity Design business model, organisers design new or adaptexisting business models for the decided strategy.

Organisers can decide to be more or less involved in the aftermath of a contest Inthe activity Develop strategy, organisers choose between a number of strategicoptions for their relationships with former contest participants based on differenttypes of open innovation Which strategy to develop depends on the organiser’sgoals The activity includes a framework of strategic options, from no involvement

to actively deploying services in a market

To deploy a service prototype requires additional development efforts During thiseffort, external developers will face a number of barriers In this activity, theorganisers can support the developers by identifying barriers and coping with them

It includes a framework of barriers common to external developers and suggestionsfor coping strategies

Organisers involvement in service deployment will affect their business models invarious ways For example, by continuing to publish open data used during thecontest, the organiser will become a data provider In the activity Design businessmodel, the organisers investigate the business impact of their chosen strategy forpost-contest support, and they determine if and how their business model should beadapted

Chapter 5

Set Contest Goals

Abstract This chapter deals with contest goals First, different types of goals arepresented together with examples from different contests Then the activity Setgoals is described with guidelines and a running example This important activity inthe pre-contest phase affects and is itself affected by several of the other activities inthe approach, such as Engage stakeholders and Design contest Finally, we suggestfurther reading on the use of goals to support management

Motivate developers

Evaluate contributions

Develop strategy

Manage barriers

Design business model

Organisations arrange digital innovations contests for several reasons As described

in Chap.3, they can help to generate ideas that can be transformed into productsand services They can help to select between competing ideas andfilter out thosethat are most promising They can also help to improve the visibility and image ofthe organiser by creating a buzz and drawing attention to the organiser and itsbrands Yet another purpose is to strengthen the size and dynamism of an inno-vation community in which the organiser participates For open digital innovationcontests, a related purpose is to investigate the opportunities that an open dataplatform can offer an innovation community Feedback from an innovation contestcan then help the organiser to understand which of the data offered is seen as themost useful by the developers, what additional data could be valuable and whichdelivery channels are most appropriate

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5.1 Types of Goals

Although goals vary between contests, the overall goal of organisers of open digitalinnovation contests is to drive forward innovation of viable digital services usingopen data To this end, there are three types of goals found in open digital inno-vation contests These types of goals are linked to the three open innovation processarchetypes developed by Gassmann and Enkel (2004) Thefirst type of goal relates

to the outside-in process of bringing in external knowledge to support the sation’s innovation The second type of goal is associated with the inside-outprocess of transferring ideas for exploitation outside the organisation The third type

organi-of goal refers to the coupled process organi-of innovating in alliances with complementarypartners In addition, organisers of open digital innovation contests can have othertypes of goals not related to innovation, such as increasing the organisation’s brandimage In Table5.1the different types and examples of goals from open digitalinnovation contests are presented

The first type of goal is to bring in external knowledge to the organisation’sinnovation process This type of goal is set to overcome a lack of internalknowledge and resources By organising an open digital innovation contest,organisers aim to establish relationships with external developers and to integratethe knowledge gained from co-operating with them Through the contest, organiserswant to harness external creativity and to use development resources as well as tofilter out the best ideas and digital service prototypes During this process, organ-isers also gain a better understanding of the needs of open data sources as well aswhat requirements developers have in terms of data quality and service levels

Table 5.1 Types of goals of digital innovation contests with examples

Type of Goal Goals

Outside-in • Harness creativity beyond organisational boundaries

• Attract development resources outside the organisation

• Increase understanding of open data needs and requirements

• Filter ideas Inside-out • Increase awareness of societal and commercial challenges where open

data and digital services can be used

• Solve societal and commercial challenges through the development and use of digital services

• Increase interest for and use of open data Coupled • Attract and engage community members

• Foster complementation through platform strategy Non-innovation • Strengthen organisation’s brand

In general, contests are used in the early stages of innovation to stimulate thegeneration of ideas and service prototypes through the innovative use and trans-formation of open data For example, the Open Stockholm Award was used toencourage external developers to offer new digital services under the umbrella ofthe City of Stockholm without hiring them.

The second type of goal is to transfer ideas and resources to be exploited byexternal developers Organisers can use digital innovation contests to make avail-able open data and to direct attention to problems that can be overcome bydeveloping digital services that make use of these open data resources Anothergoal that organisations have when organising contests is to increase the interest anduse of their open data sources Although the availability of open data increases,partly stimulated by political decisions such as the PSI directive, the awareness anduse of these sources are still low Therefore, organisers are often interested inincreasing the use of the open data they provide and the platform they use tosupport developers For example, the organisers of Travelhack and the owners ofTrafiklab, see Chap.3, wanted to increase the interest among external developersfor open data related to public transport

The third type of goal is to work in alliances with complementary partners wheredeep interaction is necessary for successful innovation In this case, the contest canprovide the means for strengthening an innovation community to which theorganiser belongs and to stimulate the use of a platform that supports formingalliances and interaction between developers For example, one of the goals ofTravelhack 2013 was to double the number of community members of Trafiklab

The fourth type of goal is to use digital innovation contests to achieve ends notdirectly related to innovation A common goal is to use contests for marketingpurposes to strengthen the brand image of the organiser For example, the City ofStockholm used the Open Stockholm Award, see Chap.3, to strengthen its image

as a modern high-tech city

5.2 Relationships Between Types of Goals

If we look closer at the different goal types, wefind that they can be interrelated.Organisers can use inside-out types of goals to stimulate outside-in types of goalsand vice versa For example, by providing open data and ideas for solutions toinnovation challenges, organisers can stimulate external developers to contributewith their knowledge, skills and creativity Also coupled types of goals can be used

to stir up action with both inside-out and outside-in types of goals For example,close collaboration on an innovation shared among partners may lead to thedevelopment of new knowledge inside the organisation which, in turn, can help it tomove the locus of innovation to inside the organisation

Goals are an important part of planning and controlling the process of digitalinnovation contests Using goals is a rational and analytical approach where thegoals help with designing the contest and in planning the other activities of thedigital innovation process Stakeholders’ commitments to goals help in convergingefforts to meet deadlines and to achieve goals After plans have been made,stakeholders can take the goals as given which supports stability and provides asense of purpose However, it is important to understand that different stakeholdershave different goals and engage in organising digital innovation contests for variousreasons This means that the goal setting activity must, on the one hand, supportgoal setting for the planning of the innovation contest itself and, on the other hand,provide a basis for stakeholders to manage individual goals relative to the commongoals of the digital innovation contest and in relation to the other stakeholders’goals For example, the common goal of all the organisers of an innovation contestcould be to stimulate the development of e-Health services, while the individualgoal for one of the organisers could be to establish relationships with skilled servicedevelopers

The activity Set goals aims at formulating goals for the digital innovation contest,e.g., to increase the influx of novel ideas into an organisation Several stakeholders:companies, public organisations, interest groups and individuals, may be involved inorganising an innovation contest and it is important to clarify the goals for eachstakeholder Typically, this activity would start with discussions with one stake-holder or in discussions between small numbers of stakeholders The discussionswould revolve around innovation challenges and opportunities with organising an

open digital innovation contest Here Table5.1provides a checklist for organiserswhen setting goals Between this activity and the activity Attract stakeholders,stakeholders are successively identified and subsequently involved in goal discus-sions Moreover, based on the chosen format in the activity Design contest, somecontest goals will be given The activity is completed when all stakeholders haveagreed on the contest goals and resolved any conflicts between their respectiveindividual goals Conflicts between the goals need to be managed in this activity, e.g.,

by the use of goal modelling and conflict resolution techniques The output of thisactivity is a common goal statement for the contest supported by all stakeholders

1 Identify innovation challenges and classify as:

(a) Lack of internal knowledge

(b) Lack of external exploitation of ideas and resources

(c) Lack of close interaction with complementary partners

2 Set goals to satisfy the innovation challenges:

(a) Outside-in types of goals

(b) Inside-out types of goals

(c) Coupled types of goals

3 Set non-innovation types of goals to satisfy other types of challenges, forexample, related to marketing

4 Formulate a common goal statement shared by all stakeholders

In the case of the Rio Transport Challenge, the goal discussion started as a ernmental collaboration between Brazil and Sweden with the aim of stimulatinginnovation One initiative was to arrange an open digital innovation contest withorganisers from both countries The general goal was to improve public transport inthe City of Rio de Janeiro during and after the Olympics Several stakeholders wereinvolved, including the City of Rio de Janeiro and local transport companies as well

gov-as Swedish public agencies, IT-companies and research institutes The commongoals included:

1 Outside-in type of goal: make Rio public transport and urban sustainablemobility more reliable, comfortable and accessible by designing open digitalservices in three areas: travel planner, comfort and accessibility and experiencethe Olympics